The findings by specialist lender Amicus Finance Plc underline the decline in support for mainstream lending and show small firms predict demand for alternative finance will increase by an average of 26% over the next two years.
Almost a half (42%) of all SMEs involved in the study have considered using alternative finance in the past five years and in 2014 the total amount raised through alternative forms of lending stood at £1.74bn, double the 2013 figure.
John Jenkins, CEO of Amicus commented: “This research shows that the business finance landscape has changed for good and demand for alternative finance is set to go from strength to strength over the coming years.
“Small businesses are increasingly turning to specialist lenders who have the skills to understand their specific needs.
“Our relationship-based approach resonates well in specialist lending markets that are poorly served by mainstream lenders,” said John.
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